Remortgage instructions dropped by 4% in July compared to the previous month, according to the latest LMS Monthly Remortgage Snapshot.
Completions went up by 71%, while cancellation rates rose by 1% and the pipeline shrank by 9%.
Borrowers who remortgaged in July saw their average monthly payments go up by £329.54.
43% increased their loan size, 30% kept it the same, and 27% reduced it.
The average increase in loan size was £20,848.18, with the average decrease at £12,739.10.
Monthly repayments increased for 56% of borrowers, stayed the same for 11%, and dropped for 33%.
The average monthly repayment increase was £329.54, while those who paid less saved an average of £207.63 a month.
The average remortgage amount across the UK was £231,936.
In London, this figure stood at £408,865, making it 122% higher than the rest of the UK, where the average was £184,534.
Additionally, data showed that the longest average previous mortgage length was in the North East at 67.07 months, while the shortest was in the South East at 55.16 months.
The average across all regions was 58.94 months, down by 18% from June.
By region, East Anglia had an average remortgage amount of £255,758, up 12% from June.
London’s average was £408,865, up 8%.
The North East averaged £141,395, while the North West was £166,410.
Northern Ireland saw an average of £134,945, and the South West was at £157,819.
Meanwhile, Scotland’s average was £300,704, the South East £212,849, Wales £151,080, Yorkshire £178,120, and the West Midlands £158,436.
Of those who remortgaged, 46% chose a 2-year fixed rate, making it the most popular option. 41% went for a 5-year fixed, 4% for 3-year, 2% for 10-year, 5% picked a tracker, and 2% chose another product.
The main aims for remortgaging were split: 26% wanted lower monthly payments, 28% wanted to release equity or borrow more, and 18% wanted to lock in a good deal for security.
Borrower expectations about interest rates showed 44% thought rates would rise within the next year, 19% thought it would take longer, and 37% did not expect a rise.
Nick Chadbourne (pictured), CEO at LMS, said: “Borrowers choose short-term certainty, steering towards 2-year fixed-rate products.
“July’s remortgage market showed signs of shifting borrower behaviour, with a substantial rise in completions, which suggests many homeowners acted quickly to secure new deals.
“Most borrowers have favoured short-term certainty, with 2-year fixed-rate products becoming the most popular choice.”
Chadbourne added: “While monthly repayments increased for many, the desire to manage costs and secure financial stability remained a key driver.
“Further spikes are likely to occur around quarter-end, which is when more fixed-rate products expire. Until then, I’m expecting activity to remain steady.”
